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(Ignore Income taxes In this problem.) Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $20,000 and will have
(Ignore Income taxes In this problem.) Buy-Rite Pharmacy has purchased a small auto for delivering prescriptions. The auto was purchased for $20,000 and will have a 6-year useful life and a $5,900 salvage value. Delivering prescriptions (which the pharmacy has never done before) should Increase gross revenues by at least $33,900 per year. The cost of these prescriptions to the pharmacy will be about $28,800 per year The pharmacy depreciates all assets using the straight-line method. The payback perlod for the auto is closest to: O 2.8 years 5.1 years 3.9 vears O 5.6 years
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